Can they start forclosure precedings on a defaulted 2nd

jonguyen75 · Joined: 28 Apr 2008 Posts: 1 1.29 Dollars($)

I am currently trying to settle a $25,000 2nd mortgage that has ballooned up to $82,000 due to back interest, late fees, and legal fees. I am in good standings with my 1st mortgage lien but have been late more than 90 days on my 2nd mortgage.

adonis · Posted: Mon Apr 28, 2008 9:29 pm Post subject:

Welcome jonguyen,

If you are 90 days late on the second mortgage, the lender may send you a notice of default which implies that he has declared foreclosure. I suppose you didn't talk to the lender in all these days when you couldn't pay. The lender could have helped you out with an alternative payment plan and you wouldn't have defaulted perhaps. Anyway, call up the lender and see what he has planned to do with your loan.

However, if it's a second mortgage, the lender can foreclose but then he'll have to pay for the first loan balance too becuse if he sells the home at an auction, the first lender will lose his interest. So, the first lender has to be paid for.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi jonguyen,

Welcome to the forum.

Even the second mortgage lender can foreclose because second mortgage is also a secured mortgage which backed be the property. So as adonis mentioned above talk with the lender and try to avoid foreclosure.

You can check out the article "17 ways to protect yourself from the foreclosure trap" so that you can save yourself from this trap.

Best of luck,
Larry

All times are GMT - 7 Hours

Page 1 of 1